Optimal lot size and total annual inventory cost. (Can you please explain q2 and q3 without excel)

Problem 3 (20 points). Toys International has an annual demand of 200,000 toy wheels. Its manufacturing plant has an annual capacity of 600,000 toy wheels. No shortages are allowed. Production set-up costs are $8000, annual holding cost rate is 20% and the production cost per wheel is $10. 1) Determine the optimal lot size and total annual inventory cost. (10 pts) ot Si 20 C 0000